Kyrgyzstan Issues $50M Gold-Backed USDKG Stablecoin

November 20, 2025 — Bishkek, Kyrgyz Republic

The Kyrgyz Republic has officially launched USDKG, a gold-backed stablecoin pegged 1:1 to the U.S. dollar, marking a significant milestone in the country’s digital modernization efforts. The launch took place at the Administration of the President of the Kyrgyz Republic, where President Sadyr Japarov, Minister of Finance Almaz Baketaev, and Biibolot Mamytov, CEO of Gold Dollar, initiated the live issuance of the first 50,000,000 USDKG tokens.

The ceremony, documented on the official Presidential website, formally introduced USDKG as a state-supervised, fully asset-backed digital currency built on blockchain infrastructure. Cointelegraph also covered the launch in a global press release.

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Building a Transparent, Gold-Backed Digital Currency

USDKG is issued by OJSC Virtual Asset Issuer, a state-owned entity under the Kyrgyz Ministry of Finance, operating within the legal framework of the 2022 Law on Virtual Assets. This structure brings national-level regulatory clarity to a digital instrument backed by one of the most historically trusted assets: physical gold.

The token is currently live on TRON (TRC-20), with Ethereum support scheduled for the next phase. Smart contracts are fully audited by ConsenSys Diligence, whose report is publicly available.

This level of open verification is unusual in the global stablecoin market, offering users a direct view into the contract behavior and minting logic.

The gold reserves behind USDKG are managed by a private entity registered in the Kyrgyz Republic under a structured service contract, while the state retains full ownership of the issuing organization. This division ensures operational independence under sovereign oversight and formally distinguishes USDKG from a Central Bank Digital Currency (CBDC).

A Model Designed for Trust and International Integration

The Kyrgyz government emphasizes that USDKG is intended to enhance economic transparency, enable efficient cross-border payments, and support participation in global digital markets. The stablecoin aligns with FATF KYC/AML standards, with identity verification required for redemptions and large-value transactions.

By backing USDKG with gold rather than short-term debt or offshore banking instruments, the Kyrgyz Republic introduces a form of digital collateral that reflects a tangible reserve base. For international partners, this structure provides clarity on custody, issuance, and governance — three areas where many stablecoin models struggle to provide transparency.

Gold Dollar, the operator responsible for managing the physical reserves, has announced an expansion path that increases the backing from $50 million to $500 million, with a long-term target of $2 billion. This trajectory reflects the country’s ambition to position USDKG as a reliable digital asset for regional trade and international cooperation.

Biibolot Mamytov, CEO of Gold Dollar, highlighted the significance of today’s launch by emphasizing the core philosophy behind USDKG. As he explained, the project was designed to merge the strengths of established monetary systems with modern digital infrastructure in a way that strengthens trust and delivers practical value.

Strengthening Kyrgyzstan’s Role in the Global Digital Economy

Digital-asset legislation introduced in recent years has positioned Kyrgyzstan as a regional leader in regulated blockchain initiatives. The introduction of USDKG adds an operational layer to that framework, creating an instrument that can be used in payments, settlement, trade finance, and cross-border commerce.

The government’s approach reflects a pragmatic philosophy: digital assets should be grounded in real-world value and supervised within clear legal boundaries. By pairing blockchain transparency with national oversight, Kyrgyzstan sets a precedent for emerging markets exploring similar initiatives.

The launch also raises the country’s profile among international investors, technological partners, and fintech innovators. A gold-backed stablecoin with verifiable reserves and public auditing provides a reliable tool for institutions seeking exposure to transparent digital assets with low counterparty risk.

Independent Audits as the Foundation of Credibility

Technical and financial audits play a central role in the USDKG model.
ConsenSys Diligence verifies the logic, security, and integrity of the smart contracts, while Kreston Global oversees reserve audits and ensures that each issued token corresponds to gold actually held within the country.

These two layers — on-chain verification and off-chain attestation — provide users with continuous assurance that USDKG is fully backed and operationally sound. Few stablecoins in global circulation combine both blockchain-level and reserve-level audits from internationally recognized firms.

Official Contract Addresses: Security Notice

To protect users from unauthorized or fraudulent tokens, the USDKG issuer has published the only official contract addresses:

Ethereum (ERC-20):
0xE820C06321E60d36257C666643Fa5436643445E3
TRON (TRC-20):
TXZo12qvnEVKvU2zbfuQeMXKusWyxonwEG

Any USDKG token deployed on other networks, including Solana, is unofficial and should not be considered valid. Users are encouraged to verify contract addresses via the official website.

A Turning Point for Kyrgyz Digital Finance

The launch of USDKG reflects a broader strategic direction: responsibly integrating blockchain technology into national financial architecture without compromising on transparency or regulatory discipline. By combining sovereign oversight, independent auditing, and the enduring stability of gold, Kyrgyzstan positions USDKG as a credible instrument for global markets.

With this first issuance, the country takes a definitive step toward a modernized digital economy — one that bridges traditional financial structures with blockchain infrastructure while maintaining full sovereign control over reserves and operations.

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